10 Things You Need To Know This Morning

Nicole Kidman

Photo: AP

Good morning. Here’s what you need to know.

  • Asian indices were mixed in overnight trading with the Shanghai Composite down 0.58%. Major European indices are up and U.S. futures indicate a positive open.
  • The European Central Bank announced a 0.25% rate hike, raising key lending rates to 1.5%. Eurozone inflation has risen to 2.7% above the ECB’s 2% target. President Jean-Claude Trichet will also hold a press conference.
  • Portuguese bond yields held steady after widening to 17.8% on Wednesday, ahead of the ECB rate hike announcement. Yields on Spanish and Italian bonds however widened, with Italian 10 year-yields reaching 5.2%. Meanwhile, Spain sold €1.5 billion of bonds maturing in 2014 with an average yield of 4.291% and €1.5 billion of 2016 bonds at 4.871%.  Don’t miss: Default odds have worsened for virtually every single country in Europe today >
  • The ADP national employment report for June crushed expectations with 157K new jobs >
  • German steel and engineering conglomerate ThyssenKrupp is planning a €1.7 billion treasury share sale to raise funds and pay down its €6.5 billion debt. The company said it would sell 49.5 million treasury shares that it acquired during share buy-back programs in 2006 and 2008.
  • The Bank of England kept its key lending rate unchanged at 0.5%. The move came on concerns that the economy’s ability to overcome a slowdown under current austerity measures outweighed above-target inflation.
  • NYSE Euronext shareholders are voting today on the $9.4 billion takeover by Deutsche Boerse AG. The deal is expected to get a majority vote. Deutsche Börse also needs to win the support of 75% shareholders by July 13 for the deal to be finalised.
  • U.S. retailers will be reporting same store sales for June today. Costco Wholesale Corp posted a 14% rise in June same-store sales, at locations that have been open at least a year, beating expectations of 12.7% increase. Check out the 15 fastest growing retailers in America >
  • Initial jobless claims fell more than expected to 418K >
  • President Obama is proposing $4 trillion in cuts over the next decade, including cuts to social security. This comes after he indicated he would support cuts to Medicare and Medicaid. Meanwhile all 47 Republican Senators are endorsing a balanced budget amendment to the Constitution. See also: 14 facts about the deficit that will blow your mind >
  • BONUS – Nicole Kidman is expected to be at the BAFTA party with the Duke and Duchess of Cambridge, during their Los Angeles visit.

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